1.Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your marginal cost decreases by $6. There are no fixed costs, and the first unit costs you $66 to produce.

Use the given information to fill in the marginal cost of each unit, as well as the total cost and average cost of each level of output.

Quantity	Marginal Cost	Total Cost	Average Cost
(Units)	($)	($)	($/unit)
1	$66	$66	$66
2
3
4
5
6

Suppose you receive a request for proposal (RFP) on a project for two units.

Your break-even price for two units is

Suppose that if you get the contract, you estimate that you can win another project for two more units.

The break-even price for those next two units alone is

2.The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $42, $32, $26, $20, and $12 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $12, $20, $26, $32, and $42 (one buyer at each price).

For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.

Price	Quantity Demanded	Quantity Supplied
($ per widget)	(widgets)	(widgets)
$12
$20
$26
$32
$42

In this market, the equilibrium price will be

per widget, and the equilibrium quantity will be widgets.

A.2

B.0

C.5

D.4

E.3

F.1